As artificial intelligence and no-code automation tools continue to reshape the technology landscape, financial institutions are under pressure to modernise software testing strategies.
In an industry defined by risk management, regulatory scrutiny, and customer trust, quality assurance teams are navigating a delicate balance: embracing automation while ensuring human oversight doesn’t disappear entirely.
According to industry insider Ruslan Desyatnikov, the founder and CEO of New York City-based QA Mentor, a global software testing firm, the narrative that manual testing is outdated is premature.
“Despite the rise of AI, manual testers remain in high demand,” he said. “In fact, 89% of our client requests still require their expertise.”
Data from the latest World Quality Report reflects a fast-evolving QA environment. While automation is reducing manual effort and driving efficiency across sectors, only 10% of respondents said manual testing is still common due to certain application architectures.
For regulated industries like banking and insurance, that nuance is critical, especially when legacy systems, mainframes, and highly sensitive customer data come into play.
“The future lies in a powerful combination of human instincts and AI speed.”
– Ruslan Desyatnikov
Desyatnikov believes financial services firms are right to be cautious. “Only 19% of respondents believe developers can handle all forms of testing, rendering separate testing teams unnecessary,” he noted.
“This underscores the irreplaceable value of human judgment in maintaining quality and tackling the complex, nuanced issues that automation just can not manage.”
Desyatnikov added that manual QA is not standing still. “Humans are crucial in validating AI-generated outputs.”
In highly regulated sectors, where audit trails and transparency are essential, he advocates for a hybrid model that blends automation with subject matter experts. These experts must review and refine test cases, enforce control frameworks, and provide feedback loops to strike a balance between speed, accuracy, and compliance.
Some observers point to shift-left testing and continuous integration as the primary challenges for QA teams. But Desyatnikov sees deeper causes.
“The challenges facing manual QAs and the QA sector have less to do with either; the shift-left approach has been with us for years,” he argued. “The challenges are more closely linked to the ongoing downturn in the tech industry.”
‘QA the first casualty’
Desyatnikov warns that as IT budgets tighten, QA is often the first casualty, a risky move for financial institutions where a single software failure can trigger regulatory fines, reputational damage, or worse.
“We’re witnessing a modern-day version of what transpired 25 years ago,” he stated, drawing a parallel to the dot-com bubble, when QA functions were trimmed to accelerate time-to-market, often with disastrous results.
Real-world examples illustrate the consequences of underinvesting in QA. From Equifax’s massive data breach in 2017, to GitLab’s data loss incident and Southwest Airlines’ software-driven holiday meltdown, technology failures have made headlines, and cost millions. Financial institutions, given the scale and sensitivity of their operations, face even greater stakes.
“These stories highlight the importance of QA,” Desyatnikov stressed. “Only the right balance will ensure that quality survives.”
For banks and financial services companies navigating digital transformation, the takeaway is clear. “AI and automation are flipping testing on its head, but manual testers aren’t out of the game yet,” he concluded.
“The future lies in a powerful combination of human instincts and AI speed. If companies cut QA for the sake of growth, they’re flirting with disaster, and history’s brutal lessons prove it.”
NEW EVENT!
Why not become a QA Financial subscriber?
It’s entirely FREE
* Receive our weekly newsletter every Wednesday * Get priority invitations to our Forum events *
REGULATION & COMPLIANCE
Looking for more news on regulations and compliance requirements driving developments in software quality engineering at financial firms? Visit our dedicated Regulation & Compliance page here.
READ MORE
- Inside banking’s shift to smarter QA to tackle complexity and risk
- SmartBear CPTO on AI in banking QA: ‘Impressive metrics but no critical scenarios’
- Banks push beyond traditional QA as resilience testing gains ground
- Banking QA professionals warn AI still doesn’t know ‘where the bodies are buried’
- RECAP: The QA Financial Healthcare & Insurance Forum Philadelphia 2026
WATCH NOW
